April 24, 2007

SINGAPORE

Arsenal are Shrewd in Business. Or Are They?

This morning, I read an interesting article about Arsenal Football Club. It stated the following (paraphrased for convenience):

In an attempt to raise money for Arsenal's designated charity of the year, Save the Children, the Board of Directors are hosting three American teams in a summer tournament at Ashburton Grove. The Colorado Rapids, the Los Angeles Galaxy, and the New England Revolution each paid the highly coveted $10,000 entrance fee, and have received the necessary approval from their parent organization, Major League Soccer (MLS).

However, Britain's government had other ideas. Last Wednesday, the Labour Party announced its plans for a farewell gathering in honor of outgoing Prime Minister Tony Blair. The gathering will be held at the Ashburton Convention Center, located directly opposite to Ashburton Grove Stadium.

Despite continued protests from Arsenal's influential board, police have forced the postponement of the tournament for fear of a coinciding terrorist strike.

In an attempt to make up for the logistical inconveniences created by the postponement, Arsenal refunded $5000 to the MLS, which is responsible for allocating the money to its member teams. But MLS Directors have taken this as an opportunity to add to their coffers by keeping $2000, and distributing $1000 to each of the three affiliated teams.

When I read this, I was a bit surprised such an insignificant event would make the news. Unless, of course, some one has an agenda against the growing MLS organization. So, I began following the cash flow when I came across the following problem:

                                              LA Galaxy: $10,000 Payment - $1,000 Refund = $9,000

                          New England Revolution: $10,000 Payment - $1,000 Refund = $9,000

                                      Colorado Rapids: $10,000 Payment - $1,000 Refund = $9,000

                                                                                                             MLS: $2,000

                                                                                                        Total: $29,000

I hope I am not embarrassing myself by typing this, but surely $29,000 cannot be all the money that changed hands? The initial payment was $30,000. Where did the remaining $1,000 disappear to?

I am afraid I may have miscalculated somewhere, so before I write to Arsenal Football Club (and the local newspaper), perhaps you can point out my error.

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